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Session 13 PD, Investment Strategies and Issues Impacting Small and Large Companies
Moderator: Mark W. Whitford, FSA, CERA, MAAA
Presenters:
Mike Dziadus, CFA Mark W. Whitford, FSA, CERA, MAAA
Current Investment Themes
Presented to
Society of Actuaries
May 4th, 2015
Presented by
www.cia-llc.com
Saint Louis231 South Bemiston Ave., Suite 200
Clayton, Missouri 63105 (314) 726 9911
Orlando13506 Summerport Village Parkway #406
Windermere, Florida 34786(321) 939 1372
Chicago150 North Wacker Drive, Suite 2660
Chicago, Illinois 60606(312) 212 4000
1150504-MSC Society of Actuaries Life and Annuity Symposium.ppt
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10.0%
11.0%Historical Rates
2 Yr. Treasury
10 Yr Treasury
30 Yr Treasury
KEY INTEREST RATES OVER TIME
Since 1993, interest rates have followed a downward trend. How low can rates get? 0%? Who knows?
Source: Cardinal Investment Advisors analysis, U.S. Treasury
2150504-MSC Society of Actuaries Life and Annuity Symposium.ppt
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11.0%10 Yr. Yields
10 Yr Treasury
AAA
AA
A
BBB
10 YEAR RATES WITH CREDIT SPREAD
Owning Corporates helps pick up some yield; however, a portfolio of 30 yr. BBB bonds isn’t prudent. How can insurance companies meet obligations in this low yielding environment?
Source: Cardinal Investment Advisors analysis, US Treasury, Barclays Live
3150504-MSC Society of Actuaries Life and Annuity Symposium.ppt
ASSET CLASSES GETTING LOOKS
Clearwater Analytics surveyed over 400 finance and accounting professionals to understand which asset classes insurers are evaluating to provide yield. 17% of the respondents were life insurers. The response below indicates which asset
classes the respondents are currently considering for their portfolios.
Source: Cardinal Investment Advisors analysis, Clearwater Analytics 2014 Insurance Benchmark Survey Results, Jan. 20, 2015
Cor
pora
tes
Gov
ernm
ents
Mon
ey M
arke
t
Mun
icip
als
Forw
ards
MB
S
Shor
t Bon
ds
Com
min
gled
Fun
ds
Futu
res
Pref
erre
d St
ocks
Wor
king
Cap
ital F
inan
ce N
otes
Com
mon
Sto
ck
Lim
ited
Part
ners
hips
Mut
ual F
unds
Mor
tgag
e Lo
ans
Swap
s
REI
TS
Opt
ions
Hig
h Yi
eld
Ban
k Lo
ans
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
DerivativeLegal Structure
Asset Class
4150504-MSC Society of Actuaries Life and Annuity Symposium.ppt
HIGH YIELD BANK LOANS
High Yield Bank Loans offer floating rate income in securities that are senior to bonds in the capital structure.
Advantages+ Senior debt leads to generally high recovery rates
in the event of default
+ Floating rates structure reduces interest rate risk
+ Separate accounts receive fixed income RBC treatment
Disadvantages- Below investment grade credit quality
- Presence of LIBOR floors can limit floating characteristics
- Labor intensive accounting in separate account structures.
Source: Cardinal Investment Advisors analysis, eVestment Alliance
Representative Bank Loan Managers*• Babson Capital Management• BlackRock• Credit Suisse Asset Management• Crescent Capital Group, LP• Eaton Vance Management• Franklin Resources, Inc.• Invesco, Ltd.• OFI Global Asset Management• Pyramis Global Advisors• Symphony Asset Management• Voya Investment Management
* Based on Size.
5150504-MSC Society of Actuaries Life and Annuity Symposium.ppt
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45.0%
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0
200
400
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800
1,000
1,200
1,400
1,600
1,800
2,000
1992
1993
1994
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2010
2011
2012
2013
2014
*
Def
ault
Rat
e (%
)
Yiel
d S
prea
ds (b
ps.)
Yield Spreads vs. Default Rates
Spread
Default Rate
CREDIT SPREADS AND DEFAULT RATES
High Yield Bank Loans offer attractive spreads. Default rates have generally remained low.
Source: Cardinal Investment Advisors analysis, CSFB, Shenkman, Eaton Vance
* Estimate for 2014 year end data.
6150504-MSC Society of Actuaries Life and Annuity Symposium.ppt
REAL ESTATE FUNDS
Investors can access REITs through both public and private vehicles. Public REITs are more liquid, whereas private REITs have a lower correlation to equity markets.
Advantages+ Pays a higher yield than many other “equity”
investments
+ Low interest rate environment has allowed restructuring and reduced leverage
+ Real Assets can provide diversification to a portfolio of stocks and bonds
Disadvantages- Private REITs can be illiquid
- Public REITs behave similar to the equity markets
- Individual investments typically employ leverage
- Real Estate recovery has led to large inflows into REITS in recent years
Source: Cardinal Investment Advisors analysis, eVestment Alliance
Representative Public REIT Managers*• BlackRock• Brookfield Investment Management, Inc.• Cohen & Steers Capital Management, Inc.• Deutsche Asset & Wealth Management• Dimensional Fund Advisors LP• Heitman Real Estate Securities• Principal Real Estate Investors• Pyramis Global Advisors• T. Rowe Price Group, Inc.• Vanguard
Representative Private Real Estate Managers*• AEW• ASB Capital Management, LLC• BlackRock• Deutsche Asset & Wealth Management• Franklin Resources, Inc.• Heitman Real Estate Securities• J.P. Morgan Investment Management, Inc.• Principal Real Estate Investors• Standard Life Investments• TIAA-CREF Asset Management, LLC.
* Based on Size.
7150504-MSC Society of Actuaries Life and Annuity Symposium.ppt
DIFFERENT INVESTMENT STYLES OF COMMERCIAL REAL ESTATE
REITs are most common in the more conservative styles of commercial real estate investing.
Source: Cardinal Investment Advisors analysis, NCREIF
Pote
ntia
l Ret
urn
Risk
Security of Income Growth of Income & Value
Opportunistic(<2% yield)
Core Plus(5-7% yield)
Core(5-6% yield)
Low Leverage(< 30%)
High Leverage(>70%)
• Leveraged multi-tenant property
• Lease out risk• Development
projects• Joint venture activity• More active buy/sell
• Distressed sellers globally
• Private partnerships• Recovery capital• Emerging property
sectors• New company
formation• Real estate private
equity
• Substantially leased, stable, single or multi-tenant property
• Quality of income• Low lease
rollover• Long-term
leases• Longer holding periods
Value-Added(2-4% yield)
• Property repositioning strategies
• Re-development projects
• Change of lease profile
• Sector specific• Specialty properties
(medical, assisted care)
REITs
8150504-MSC Society of Actuaries Life and Annuity Symposium.ppt
MASTER LIMITED PARTNERSHIPS (MLPs)
Master Limited Partnerships (MLPs) are companies structured as limited partnerships with ownership units that can trade on public exchanges. The majority of MLPs are formed to own and operate natural resource assets.
Advantages+ Large portion of total return is investment income
+ Investment in real asset can diversify stock and bond portfolios
+ A portion of income distributions are treated as depreciation, creating a tax deferral mechanism
+ For accounting purposes, securities are treated as stocks instead of partnerships
Disadvantages- Tax deferral is not as beneficial for institutions
- K-1s can make accounting cumbersome
- Fund investments do not receive tax deferral treatment
- Potential to be reclassified as a C-Corp
Source: Cardinal Investment Advisors analysis, eVestment Alliance
Representative MLP Managers*• Advisory Research, Inc.• Center Coast Capital• ClearBridge Investments, LLC• Cushing Asset Management, L.P.• Goldman Sachs Asset Management• Harvest Fund Advisors, LLC• Miller/Howard Investments, Inc.• Neuberger Berman• OFI Global Asset Management• Salient Partners, L.P.• Tortoise Capital Advisors, LLC
* Based on Size.
9150504-MSC Society of Actuaries Life and Annuity Symposium.ppt
$0
$20
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2014
Oil
Pric
e
Inde
x V
alue
MLP Return Components vs. Oil Prices
Total Return
Price Return
Oil Price (WTI)
MLP ASSET GROWTH
The amount of income generated from MLPs has grown drastically in the past five years.
Source: Cardinal Investment Advisors analysis, Alerian
10150504-MSC Society of Actuaries Life and Annuity Symposium.ppt
BC Gov't/Credit
BC Long Gov't Credit
Municipals
Mortgage Loans
Private Placement
Trade Finance
Preferred Stock
High Yield Bonds
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0
Yiel
d (%
)
Duration (Years)
Yield vs. Duration
OTHER YIELD BASED ASSET CLASSES
Insurers have shown interest in virtually all yield-based asset classes that are structured to work within the regulatory environment.
Source: Cardinal Investment Advisors, Barclays Live, Federated, Bank of America/ML
Primary Risk (Other than Interest Rates)• Municipals – Less liquidity than Core Bonds• Mortgage Loans – Illiquid• Private Placements – Illiquid• Preferred Stock – Concentration in Financials• Trade Finance – Illiquid, Credit Quality• High Yield Bonds – Credit Quality
For Internal Use Only / Not for Distribution to the Public
Mark W. Whitford, FSA, CERA, MAAA
Mark.Whitford@FranklinTempleton.com
www.ftinstitutional.com/iam
For Internal Use Only / Not for Distribution to the Public
Matching the Right Investment
Strategy with the Right
Company
Mark W. Whitford, FSA, CERA, MAAA
Senior Portfolio Investment Strategist
Franklin Templeton Companies, LLC
May 2015
For Internal Use Only / Not for Distribution to the Public
Insurance Industry Analysis
For Internal Use Only / Not for Distribution to the Public
Highlights
• Life and Annuity companies have over US$3.7 trillion in general account assets
– Not easy to find a “diamond in the rough strategy”
• Sometimes it is possible (Build America Bonds)
• Concentrated
– 90% of the assets come from less than 5% of the companies
• Long-tailed liabilities
– Some lines (LTC) have durations over 30 years
• On average, 10% of a company’s invested assets are capital and surplus
– Limits the amount of investment risk a company can take
Life and Annuity Industry
3
Data above based on SNL data as of 12/31/14. SNL Financial collects, standardizes and disseminates all types of relevant corporate, financial, market and M&A data for a variety of
industries including insurances. SOURCE: SNL FINANCIAL LC. CONTAINS COPYRIGHTED AND TRADE SECRET MATERIAL DISTRIBUTED UNDER LICENSE FROM SNL. FOR RECIPIENT'S
INTERNAL USE ONLY.
For Internal Use Only / Not for Distribution to the Public
Challenges and Issues
• Asset Liability Management (ALM)
• Hitting yields similar to rate used in pricing
• Adding alternative asset classes, including equities
• Enterprise Risk Management (ERM)
• Own Risk & Solvency Assessment (ORSA)
Life and Annuity Industry
4
Data above based on SNL data as of 12/31/14. SNL Financial collects, standardizes and disseminates all types of relevant corporate, financial, market and M&A data for a variety of
industries including insurances. SOURCE: SNL FINANCIAL LC. CONTAINS COPYRIGHTED AND TRADE SECRET MATERIAL DISTRIBUTED UNDER LICENSE FROM SNL. FOR RECIPIENT'S
INTERNAL USE ONLY.
For Internal Use Only / Not for Distribution to the Public
Highlights • Surplus increased $24 billion in 2014
– Average RBC ratio increased from 967% to 975%
• Liabilities-to-Surplus ratio, decreased to its lowest level in the past five years
– Net Premiums increased 14.97% – Biggest jump in premiums was from annuities
• Asset Allocation
– Increase allocation to mortgage loans, equities, high-yield securities and schedule BA assets
– Average maturity increased 0.2 years
• Net Yield on Invested Assets was 4.83% in 2014 (4.92% in 2012, & 5.24% in 2010)
• Percent of total revenue coming from net investment income decreased 1.5% (23.7%–22.2%)
• Return-on-Surplus ratio, on average, decreased 0.5% (12.1%–11.6%)
Life and Annuity Industry Changes from 2013
5
Data above based on SNL data as of 12/31/14. SNL Financial collects, standardizes and disseminates all types of relevant corporate, financial, market and M&A data for a variety of
industries including insurances. SOURCE: SNL FINANCIAL LC. CONTAINS COPYRIGHTED AND TRADE SECRET MATERIAL DISTRIBUTED UNDER LICENSE FROM SNL. FOR RECIPIENT'S
INTERNAL USE ONLY.
For Internal Use Only / Not for Distribution to the Public
Highlights • As companies grow they tend to increase their allocations to mortgage loans, derivatives
and other invested assets at the expense of bonds, cash and short-term investments.
– On average, the smallest companies will have over 85% of their assets in bonds, cash and short-term investments and less than 15% in mortgage loans, derivatives and other invested assets
– For the largest companies, the 15% jumps to over 25% at the expense of bonds, cash and short-term investments
• In terms of fixed income, as companies grow they tend to allocate by:
– Increasing allocation to industrial bonds and decreasing allocation to U.S. Gov’t issues
– Increasing allocation to lower rated issues
– Increasing the bond portfolio duration
• As a percent of surplus, allocations to riskier assets (mortgage loans, high yield bonds) increase as companies grow
• Approximately 20% of revenue comes from investment income
Life and Annuity Industry 2014 Analysis
6
Data above based on SNL data as of 12/31/14. SNL Financial collects, standardizes and disseminates all types of relevant corporate, financial, market and M&A data for a variety of
industries including insurances. SOURCE: SNL FINANCIAL LC. CONTAINS COPYRIGHTED AND TRADE SECRET MATERIAL DISTRIBUTED UNDER LICENSE FROM SNL. FOR RECIPIENT'S
INTERNAL USE ONLY.
For Internal Use Only / Not for Distribution to the Public
• As a company grows, it tends to:
– Increase the amount invested in mortgage loans, derivatives and other invested
assets
– Decrease the amount invested in cash and short-term securities
Life and Annuity Industry Invested Assets
7
Data above based on SNL data as of 12/31/14. SNL Financial collects, standardizes and disseminates all types of relevant corporate, financial, market and M&A data for a variety of
industries including insurances.
Asset Allocation as % of Investable Assets
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
< $0.1 Billion $0.1–$1 Billion
$1–$5 Billion $5–$10 Billion $10–$20 Billion
> $20 Billion
Other Invested Assets
Derivatives
Contract Loans
Real Estate
Mortgage Loans
Preferred Stock
Equity
Bonds
Cash & Short Term
For Internal Use Only / Not for Distribution to the Public
• The amount, as a percent of surplus, invested in riskier asset classes increases as
a company grows
– Mortgage loans and high yield make up a majority of the riskier assets
Life and Annuity Industry Capital and Surplus
8
Data above based on SNL data as of 12/31/14. SNL Financial collects, standardizes and disseminates all types of relevant corporate, financial, market and M&A data for a variety of
industries including insurances.
Investment Leverage and RBC Ratio
0%
50%
100%
150%
200%
250%
300%
<$0.1 Billion $0.1–$1 Billion $1–$5 Billion $5–$10 Billion $10–$20 Billion >$20 Billion
Derivatives
Other
High Yield
Mortgages
Real Estate
Equities
RBC Ratio
1,341% 892% 898% 889% 768% 1,057%
For Internal Use Only / Not for Distribution to the Public
• As a company grows, it tends to:
– See an increase in the amount of RBC coming from C-0 and asset risks
– Decrease amount coming from business risk and insurance risk
Life and Annuity Industry RBC Ratio
9
Data above based on SNL data as of 12/31/14. SNL Financial collects, standardizes and disseminates all types of relevant corporate, financial, market and M&A data for a variety of
industries including insurances.
Estimated RBC by Factor
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
<$0.1 Billion $0.1–$1 Billion
$1–$5 Billion $5–$10 Billion
$10–$20 Billion
>$20 Billion
C-4b Business Risk Health
C-4a Business Risk Life
C-3a Interest Rate Risk
C-2 Insurance Risk
C-1o Other Asset Risk
C-1cs Common Stock
C-0 Subsidiaries
For Internal Use Only / Not for Distribution to the Public
• As a company grows, it tends to see an increase in investment income, as a
percent of invested assets
Life and Annuity Industry Investment Income
10
Data above based on SNL data as of 12/31/14. SNL Financial collects, standardizes and disseminates all types of relevant corporate, financial, market and M&A data for a variety of
industries including insurances.
Investment Income as a % of Invested Assets
3.0%
3.5%
4.0%
4.5%
5.0%
5.5%
6.0%
6.5%
<$0.1 Billion $0.1–$1 Billion $1–$5 Billion $5–$10 Billion $10–$20 Billion >$20 Billion
2014
2013
2012
2010
For Internal Use Only / Not for Distribution to the Public
• Increased allocation to mortgage loans (21%) in the past five years
• Increased allocation to “other invested assets” (45%) in the past five years
• Increased allocation to equities (10%) in the past year, 5% increase prior
four years
• Even with the above increase in investment risk, net yields are down 50bps
over the same time period
These are Interesting Times
11
• Doubled allocation to high yield securities (2.5%-5% of the bond portfolio) in past five years
• Increased allocation to equities (43%) in the past five years
• Allocation to “other invested assets” increased (60%) in the past five years
• OAD increased 0.3 years in the past five years
• Percent of Capital & Surplus invested in risky assets has increased over 10% in the same time period
• Average Gross Bond Yield is down over 100bps over the past five years
1
LIFE & ANNUITY INDUSTRY
2
HEALTH INDUSTRY
3
P&C INDUSTRY
Insurance companies have been increasing their risk tolerance over the past few years
Data above based on SNL data as of 12/31/14. SNL Financial collects, standardizes and disseminates all types of relevant corporate, financial, market and M&A data for a variety of
industries including insurances. SOURCE: SNL FINANCIAL LC. CONTAINS COPYRIGHTED AND TRADE SECRET MATERIAL DISTRIBUTED UNDER LICENSE FROM SNL. FOR RECIPIENT'S
INTERNAL USE ONLY.
For Internal Use Only / Not for Distribution to the Public
• U.S. economy is starting to pick up
• U.S. governments current debt is over $18 trillion and growing
• U.S. Social Security disability fund may run out of money in 2016
• Highway fund estimated to run out of money in 2015
• Potential for rapid inflation
Where are Rates Going? Up? Down?
12
• GDP has not consistently grown above 2% for a long time
• Labor slack
• Low inflation
• Some expecting an inverted yield curve before year-end
• Another recession – Deflation
• QE in Europe just started – estimated at $1 Trillion, over $100B moved out of Europe in 4Q14
• Near record spread between the 10yr U.S. treasury bond and 10yr German Bund
• 9 European countries currently have negative 2 year bond yields
• Nestle recently issued a 2yr bond at a negative 2bps yield
• Baby Boomers working longer and saving more
• Stronger U.S. dollar – some estimate Euro/Dollar will be at parity soon
1
CASE FOR RATES GOING UP
2
CASE FOR RATES STAYING AROUND WHERE THEY ARE TODAY
3
CASE FOR RATES GOING DOWN
Source: Franklin Templeton
For Internal Use Only / Not for Distribution to the Public
Case for Rates Going Up
13
As of April 7, 2015
Source: USDebtClock.org
For Internal Use Only / Not for Distribution to the Public
Case for Rates Going Up
14
CBO’s February 2013 Report
The Budget and Economic Outlook: Fiscal Years 2013 to 2014
Source: USA.gov
For Internal Use Only / Not for Distribution to the Public
Case for Rates Staying Close to Where They are Today
15
Source: Federal Reserve as of 9/30/13.
0%
10%
20%
30%
40%
50%
60%
$0
$400
$800
$1,200
$1,600
$2,000
1Q90
1Q93
1Q96
1Q99
1Q02
1Q05
1Q08
1Q11
Total Liquid Assets Liquid Assets/Short-Term Liabilities
3Q13
For Internal Use Only / Not for Distribution to the Public
Case for Rates Staying Close to Where They are Today
16
Source: Bloomberg
Japan’s GDP, Unemployment & Inflation Trends
For Internal Use Only / Not for Distribution to the Public
Case for Rates Staying Close to Where They are Today
17
For illustrative and discussion purposes only. Source: BEA; Hokenson & Company; “Global Population Developments and Implications for Investments”; BLS. As of June 30, 2013.
Estimates for July 2013 – December 2016.
0%
3%
6%
9%
12%
15%
57 61 65 69 73 77 81 85 89 93 97 01 05 09 13 17 21 25
0.00%
0.75%
1.50%
2.25%
3.00%
3.75%
Labor Force (right scale) GDP (left scale) 10Y Treasury Rate (left scale)
Labor Force Forecast GDP Forecast
For Internal Use Only / Not for Distribution to the Public
Case for Rates Staying Close to Where They are Today
18
Source: USA.gov
Median usual weekly earnings of full-time wage and salary with ethnicity, and sex,
4th quarter averages, not seasonally adjusted
TOTAL
Age, Race, and Hispanic or Latino Ethnicity Number of Workers in
(Thousands)
Median
Weekly Earnings
TOTAL
16 YEARS AND OVER 107,368 $799
16 to 24 years 9,755 493
16 tom 19 years 1,150 387
20 to 24 years 8,605 505
25 YEARS AND OVER 97,613 847
25 to 54 years 75,993 827
25 to 34 years 26,188 743
35 to 44 years 24,559 882
45 to 54 years 25,245 903
55 YEARS AND OVER 21,620 915
55 to 64 years 17,882 922
65 years and over 3,738 869
For Internal Use Only / Not for Distribution to the Public
Case for Rates Staying Close to Where They are Today
19
Data above based on SNL data as of 12/31/14. SNL Financial collects, standardizes and disseminates all types of relevant corporate, financial, market and M&A data for a variety of
industries including insurances. SOURCE: SNL FINANCIAL LC. CONTAINS COPYRIGHTED AND TRADE SECRET MATERIAL DISTRIBUTED UNDER LICENSE FROM SNL. FOR RECIPIENT'S
INTERNAL USE ONLY.
Total Assets ($) 2014 2013 2012 2011 2010
Life Industry 6.26 Trillion 6.00 Trillion 5.64 Trillion 5.37 Trillion 5.20 Trillion
P&C Industry 1.78 Trillion 1.74 Trillion 1.65 Trillion 1.59 Trillion 1.55 Trillion
Health Industry 0.31 Trillion 0.30 Trillion 0.27 Trillion 0.18 Trillion 0.23 Trillion
U.S. Retirement Assets 23.0 Trillion 19.9 Trillion 18.2 Trillion 18.2 Trillion
Total 31.04 Trillion 27.46 Trillion 25.34 Trillion 25.18 Trillion
For Internal Use Only / Not for Distribution to the Public
Case for Rates Going Down
20
Source: Bloomberg
For Internal Use Only / Not for Distribution to the Public
Case for Rates Going Down
21
Source: Bloomberg.
For Internal Use Only / Not for Distribution to the Public
Why Diversify? Because Winners Rotate
22
1.Source: © 2015 Morningstar, Credit Suisse, Barclays, Citigroup, Payden & Rygel. See www.franklintempletondatasources.com for additional provider information. Floating-rate loans as
represented by the Credit Suisse Leveraged Loan Index; short term government bonds as represented by the Barclays U.S. Government 1–2 Year Index; high–yield bonds as
represented by the Credit Suisse High Yield Index; global bonds as represented by the Citigroup World Government Bond Index; Treasury inflation-protected securities (TIPS) as
represented by Barclays U.S. TIPS Index; mortgage–backed securities as represented by the Barclays U.S. Mortgage Backed Securities Index; investment–grade corporate bonds as
represented by the Barclays U.S. Corporate Investment Grade Index; Municipals as represented by the Barclays Municipal Bond Index; 10-Year U.S. Treasury Bonds as represented by
the Payden & Rygel 10-Year U.S. Treasury Note Index. Indexes are unmanaged, and one cannot invest directly in an index. Past performance does not guarantee future results.
Annual Total Returns of Key Fixed Income Sectors 1991–20151
Worst
Best
Worst
Best
For Internal Use Only / Not for Distribution to the Public
Appendix
For Internal Use Only / Not for Distribution to the Public
Mark Whitford is a senior insurance investment strategist at Franklin Templeton Institutional. Mr. Whitford is in charge of providing asset liability and integrated risk management advisory services to insurance company clients. He is responsible for life and health and property and casualty insurers, as well as reinsurer's portfolios managed by our clients throughout the U.S. and Bermuda. His focus is to effectively provide advisory services that results in maintenance and growth of assets under management with our client. Mr. Whitford is also responsible for assisting the marketing team with strategies for attracting new clients. He works closely with the investment group to implement investment policy within client portfolios. Mr. Whitford will also represent the firm at regular client board and investment committee meetings, investment strategy, and performance results. He will continuously monitor regulatory and tax issues that may affect the performance of our client's portfolios.
Mr. Whitford has been employed by Franklin Templeton since 2013. He has been in various Actuarial roles since 1995.
Prior to joining Franklin Templeton, Mr. Whitford worked for Brookfield Investment Management in a similar capacity. He spent the first 13 years of his Actuarial career on the liability side of the balance sheet and the past seven years focused mainly on the asset side.
Mr. Whitford earned his B.S. in Actuarial Science from the University of Connecticut. He is a Fellow of the Society of Actuaries, a member of the American Academy of Actuaries and holds the designation of Chartered Enterprise Risk Analyst.
Management Profile Insurance Asset Management
24
MARK W. WHITFORD, FSA / CERA / MAAA
Senior Insurance
Investment Risk Strategist
Franklin Templeton Institutional
Franklin Templeton Institutional, LLC
New York, United States
For Internal Use Only / Not for Distribution to the Public
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be observed in that country. None of the services or other matters described here should be taken as an offer or a solicitation of those
services or other matters in any jurisdiction where such an offer or solicitation is not permitted under applicable legislation.
Important Disclosures
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